The Service has instituted new due diligence requirements for the tax preparer regarding the EITC. In order to demonstrate that I have performed my due diligence, I am required to ask questions (many of which may seem personal and may be uncomfortable for you to answer).  These questions will be designed to determine that you [...]

For those of you who have sold stocks this year, the complexity of the Schedule D has increased greatly.  For “covered” securities (generally securities acquired after 2010), the brokerage firm will show your basis and will calculate the gain or loss which they will report on a 1099-B.  For securities acquired prior to 2010, the [...]

I am so sorry. It has come to my attention that several of you did not receive my tax reminder postcard in the mail this year.  I apologize to all of you who I missed. The oversight was my issue with the tools I am using, not a reflection of your value to me as [...]

The Service has several types of penalties which it assesses.  The most common are the “Failure to File” and the “Failure to Pay” penalties.  The combination of the two penalties can be up to 25% of the tax due (on April 15th or the due date of the return that year).  Occasionally taxpayers do not [...]

As you begin the task of gathering your records to prepare your tax return, you might want to “prepare for an audit” as the same time.  This is not meant to alarm you.  Most times, an audit is just verifying the information and ensuring that the appropriate tax has been paid.  As I reflect back [...]